Workplace Retirement Plan, Financial Advisor, or Both? Money Not Math 131

Do you believe Financial Advisors have a larger role to play in your retirement planning?

“We saw that a remarkable 90% of employees are interested in the support of a financial advisor to guide them through their savings options. The report also found that an overwhelming majority of employees surveyed rank employer-sponsored retirement programs and employer matching as high priority,” said Schumm.

“Of the employers surveyed, 34% of them came to offer a retirement plan because of an advisor or accountant’s recommendation, and 47% of them said they believed advisors add the most value when educating employees about 401(k)s and investment decisions.”

Article Referenced: https://www.wealthmanagement.com/retirement-news/survey-financial-advisors-have-larger-role-play-clients-retirement-planning

Disclaimer, this content is not legal, tax, or investment advice. You should always consult a qualified professional regarding your personal situation.

Is your memory your worst enemy? Money Not Math 130

People have memories. Markets don’t. And that’s a good thing.

Build your financial plan and start your investing with a clean slate – just like markets do every day.

Focus on controlling what you can control. Judge yourself by the quality of your decision and actions, not outcomes. There are so many factors outside your control that can, and likely will, impact investment returns.

“It can feel daunting to develop an investment plan you can stick with and determine the level of risk that’s right for you. But few things are more important than how you invest your life savings. That’s why most people would probably benefit from a financial advisor to help them talk it all out. When it comes to investing, the key is not to try to outsmart the market, but to understand how it works and use that knowledge to your advantage. The market is a great information processing machine. It runs on human ingenuity, which is why returns tend to grow over time as people work to innovate and improve the value of the companies they work for.” – People Have Memories. Markets Don’t. by David Booth.

#MoneyNotMath #5StoneFinancialGroup #Money #Retirement #RetirementPlanning #Memory #Markets #StockMarket #Investing #FinancialPlan

Disclaimer, this content is not legal, tax, or investment advice. You should always consult a qualified professional regarding your personal situation.

What is the BEST way to Grill Steak? Money Not Math 129

Rare, Medium, Well done, or something else?

Sear and then lower the temperature, at high heat the whole time, reverse sear or something else?

Thank you, Tyler Ust, for your request on my last video for more steak content. I hope you and the others who watch or listen to this enjoy it and it brings you value.

The 9 best retirement plans according to bankrate.com and how none of them are actually a plan they are just products.

How are you building your retirement plan specific to your personal goals and situation?

Is the best retirement plan for you the same as the best one for your friend, neighbor, or family member? … Probably not.

Please let me know what you think the best way to grill steak and/or plan for retirement is in the comments!

Disclaimer, this content is not legal, tax, or investment advice. You should always consult a qualified professional regarding your personal situation.

What is the red stuff in steak? Money Not Math 128

Did you know the red stuff in a rare steak is NOT blood?

According to steakschool.com, “Even the rarest and reddest of steaks is actually bloodless. Instead, what you’re looking at is a combination of water, which makes up about 75 per cent of meat, and a protein found in muscle tissue called myoglobin. If that name sounds familiar, it’s probably because it sounds a bit like hemoglobin, the protein that transports oxygen in blood. Yes, there’s that word again, but myoglobin isn’t blood (honest!) – instead, its job is to transport oxygen through muscle.”

Shoutout to Vanessa Skadsem for the challenge to do this Money Not Math episode highlighting common myths or unknowns around money after our Myoglobin conversation this morning.

Common Myths around money that many believe to be true:

1. The best way to pay off a house early is to apply extra payments to your mortgage.

2. Qualified plans such as IRAs and 401(k)s ALWAYS provide the most attractive retirement benefits.

3. Home equity has a rate of return.

4. Mortgage interest is an expense that should be eliminated as soon as possible.

5. Substantial equity in your home is the best way to enhance your net worth.

6. Home equity is always liquid.

7. All debt is bad.

8. You will definitely be in a lower tax bracket when you retire than when employed.

9. Life insurance should never be used to accumulate and store cash and is always a poor investment.

o This isn’t saying life insurance should always be used to accumulate and store ash and is always a great investment. Every situation is different.

10. Wise investors should always choose investments that accumulate the most money.

o Or should we focus on Investments that generate the highest net spendable income?

11. Only lucky people with lots of money or discretionary dollars, taking high risk and achieving high rates of return, get wealthy.

Disclaimer, this content is not legal, tax, or investment advice. You should always consult a qualified professional regarding your personal situation.

#MoneyNotMath #5StoneFinancialGroup #money #retirement #RetirementPlanning #MoneyMyths #mortgage #MortgageInterest #HomeEquity #debt #LifeInsurance #wealth #risk

Tips for Last-Minute IRA Contributions. Money Not Math 127

Considering making a last-minute 2022 IRA contribution? Here are some tips and key dates you should know.

When is the deadline?

Should you do a traditional or Roth contribution?

What is the maximum you can contribute?

Do you qualify to contribute to a Roth IRA or receive deductions from an IRA?

Are you able to use a backdoor Roth IRA? (non-deductible IRA contribution and then convert it to a Roth)

New IRA contributions limits in 2023: $6,500 if you’re under age 50 and $7,500 if you are age 50 or over.

#MoneyNotMath #5StoneFinancialGroup #Money #Retirement #IRA #IndividualRetirementAccount #roth #401k #taxes #TaxDeductions #BackdoorRoth #FinancialAdvisor

Disclaimer, this content is not legal, tax, or investment advice. You should always consult a qualified professional regarding your personal situation.

Developing a Financial Plan You Can Stick With. Money Not Math 126

“Think back to December 2019. The economy was humming. Unemployment, interest rates, and inflation were at historically low levels. But then what happened?”

“I don’t know anyone who predicted all of that back in December 2019. But what if someone had? What would you have done?

Next question: What if that person told you that, despite all that news, the Russell 3000 would average a return of 10% a year over the next three years?4 Would you have believed them? Would you have stayed in the market?”

“The past three years were a good test of whether or not you had an investment plan that was sensible to stick with. So take a moment to think about why you did what you did, and prepare for next time. Because the next three years may be just as uncertain.”

“Even the greatest plan is no good if you can't stick with it during tough times.”

Article referenced and quoted: “This Has Been a Test: Developing a Financial Plan You Can Stick With” by David Booth chairman and Founder of Dimensional

Disclaimer, this content is not legal, tax, or investment advice. You should always consult a qualified professional regarding your personal situation.

#MoneyNotMath #FinancialPlan #Retirement #RetirementPlanning #Money #5StoneFinancialGroup #unemployment #InterestRates #inflation

Biggest Financial Topics of 2022 and Setting Goals for 2023. Money Not Math 125

Market Volatility: “There’s not a single year when the market was always positive. There will be times throughout any year when you see the market drop,” said Wes Crill, Head of Investment Strategist at Dimensional.

Stock Performance in Recessions: Crill said. “There is no cookie-cutter recession and no absolute signal of when to get in or when to get out of the market.”

The Fed’s Impact: “The US Federal Reserve’s series of rate increases reminded investors that markets tend to incorporate such actions in prices before they are officially announced.”

Benefits of Long-Term Investing: “Investors without a solid plan (and professional guidance on how to stick with that plan) may have found themselves making some knee-jerk decisions about their money this year.”

Value bounces Back: Crill said. “But it is important for investors to balance their enthusiasm for higher expected returns with their tolerance for underperformance.”

Goals to improve in 2023

- Family: put my phone on airplane mode during family time.

- Faith: try to be the most positive person in the room and attend church more often.

- Financials: pay off all credit cards and buy a new house.

- Fitness: reach my weight goal of 185 pounds and score 45 points minimum per month.

- Friends: continuously surround myself with people who challenge me to be a better person.

- Fun: happiness is the ultimate goal of life so try to focus my time on only doing things I enjoy.

#MoneyNotMath #Retirement #5StoneFinancialGroup #RetirementPlanning #Money #Finance #Goals #MarketVolatility #Recessions #Investing

Article quoted/ referenced: “Dimensional’s Takes on the Biggest Financial Topics of 2022” – Dimensional.com

Disclaimer, this content is not legal, tax, or investment advice. You should always consult a qualified professional regarding your personal situation.

Congress wants to change how you save for retirement. Money Not Math 124

“The changes come as almost half of older workers have no retirement savings, and many who are socking away money for their golden years are far from their goals. While Americans believe they need savings of $1.25 million to live comfortably in retirement, the typical retirement account holds less than $87,000.” - https://www.cbsnews.com/news/retirement-secure-2-0-spending-bill/

Employers may match student loan repayments.

A 50% retirement match for $2,000 in savings.

Delay mandatory withdrawals until age 75.

“Pre-retirees” can sock away more money.

Automatic 401(k) enrollment.

#MoneyNotMath #5StoneFinancialGroup #Money #Retirement #RetirementPlanning #Congress #StudentLoan #401k

Disclaimer, this content is not legal, tax, or investment advice. You should always consult a qualified professional regarding your personal situation.

7 Questions to Ask Yourself During Retirement Planning. Money Not Math 123

Have you determined if you are prepared for retirement?

Have you asked yourself these seven questions about your retirement plan? Have you found answers to these seven questions?

Would it be helpful to have a professional help you build, implement, and maintain your retirement plan?

“Many people are living longer, which means your retirement could last for decades. But that doesn’t mean you should start planning later. Developing a thoughtful plan can help you have a positive experience in retirement.”

“Everybody's assumption is you spend less in retirement,” Gondeck says. “The reality is you spend 20% to 25% more, because you have more time to spend.”

Article referenced, https://money.usnews.com/money/retirement/aging/articles/questions-to-ask-yourself-during-retirement-planning

#MoneyNotMath #5stonefinancialgroup #retirement #RetirementPlanning #Investments #PositiveExperience

Disclaimer, this content is not legal, tax, or investment advice. You should always consult a qualified professional regarding your personal situation.

Time the Market at Your Risk. Money Not Math 122

“However, when it comes to investing and money management, my fear is that faster and easier ways of investing will allow people to lose more money faster and easier.”

“The purpose of having an investment plan is so you can relax. So you don’t look at the market every day, stressing out and asking, “How’m I doing? How’m I doing?” Investors actively trading are not just potentially missing out on the expected return of the market—they’re stressed out, worrying about how the news alert they just received will impact their long-term financial health, and whether they can or should do anything about it.”

“The financial services industry has not done a good enough job educating investors that the best approach for their long-term financial well-being is to make a plan, implement it, and stick with it.”

“Picking stocks is more like gambling than investing.”

Article quoted, “Time the Market at Your Peril” – David Booth Executive Chairman and Founder of Dimensional

#MoneyNotMath #5StoneFinancialGroup #Retirement #RetirementPlanning #investing #money #plan #RELAX #MarketTiming

Disclaimer, this content is not legal, tax, or investment advice. You should always consult a qualified professional regarding your personal situation.